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Senate committees trim HTA emergency fund and ask for consolidation review
Summary
Committees voted to lower the Hawaii Tourism Authority’s emergency fund cap from $5 million to $3 million and requested the committee report consider consolidating tourism emergency funds with broader state emergency reserves.
The joint Senate committees voted to pass Senate Bill 986 with amendments to reduce the HTA tourism emergency fund cap from $5 million to $3 million and directed staff to incorporate the Tax Foundation’s recommendation to consider consolidating emergency funds.
HTA witnesses explained the tourism emergency fund has been used following large events to support visitor assistance, rebooking, sheltering and marketing for recovery — citing the responses needed after the 2008 airline collapses and the Maui wildfires. HTA’s interim CEO said the authority has at times expended the full $5 million and then reallocated other HTA budget funds for marketing and recovery efforts.
Tom Yamachika of the Tax Foundation told senators the state should consider consolidating emergency funds so agencies and lawmakers have better visibility into total available emergency reserves. “When we have a real emergency on our hands, it’s gonna be tough to figure out how much money we have and where our resources are, if the funds are spread out in too many places,” Yamachika said.
Senators asked HTA about past expenditures from the fund and whether $3 million would be sufficient. HTA responded that the adequacy depends on the nature of the emergency and that additional funds for recovery have been requested in subsequent budgets.
The committees voted to pass the bill with SD 1, make technical adjustments, and defer the effective date to July 1, 2050. The committee report will note the Tax Foundation recommendation to examine fund consolidation.
